CBSA Updates Guidance on Tariff Relief for U.S. Surtaxed Imports

Canada’s tariff remission orders provide a path for some Canadian importers to either receive an exemption at the time of import or apply for a refund of surtaxes already paid.

The Canada Border Services Agency (CBSA) has updated its guidance on how Canadian importers can apply for tariff relief under one of two remission orders.

The first, United States Surtax Remission Order (2025): SOR/2025-122, provides general tariff relief for essential goods related to public interest or commercial use.

The second, United States Surtax Remission Order (Motor Vehicles 2025): SI/2025-60, targets the automotive sector and offers relief for certain motor vehicles of U.S. origin.

These remission programs are designed to reduce the financial strain on businesses affected by the surtaxes Canada imposed on certain U.S.-origin goods earlier this year, which took effect on March 4, March 13, and April 8, 2025.

They apply to tariffs paid or payable under the United States Surtax Order (2025-1), the United States Surtax Order (Steel and Aluminum 2025) or the United States Surtax Order (Motor Vehicles 2025).

United States Surtax Remission Order (SOR/2025-122)

This order provides a six-month window of tariff relief for U.S.-origin goods imported into Canada between the effective date of each surtax and October 16, 2025.

To qualify, the goods must be used in one of four specific categories:

• Public health, public safety, and national security
• Healthcare
• Manufacturing, processing, or food and beverage packaging
• Goods referred to in schedule (goods referred to in column 1 of the schedule that are classified under a tariff classification number set out in column 2)

Under this program, importers can apply the remission at the time of accounting, which means the tariff relief is applied before duties are paid. If surtaxes have already been paid, retroactive refunds may be possible in some cases, subject to CBSA approval.

Only the importer of record can make the claim.

United States Surtax Remission Order for Motor Vehicles (SI/2025-60)

This order is focused on the automotive industry and applies to a specified quantity of U.S.-origin, CUSMA-compliant motor vehicles imported between April 9, 2025, and April 8, 2026.

To qualify for tariff relief under this remission order, importers must meet several conditions:

• They must report import activity to both the Minister of Public Safety and the Minister of Industry, including detailed information on the number and type of U.S.-origin vehicles imported.
• They must provide data on their Canadian vehicle production, including the use of Canadian-origin inputs.
• If a company has paused or reduced Canadian manufacturing due to retooling or other factors, it must demonstrate that domestic production will restart in accordance with the requirements set by the ministries.

Case-by-case relief for other businesses

For businesses that don’t fall under either of the above orders, tariff relief is still available through a case-specific application process.

This option can be used in exceptional circumstances, including:

• When goods used as inputs cannot be sourced domestically—either nationally or regionally—or reasonably from non-U.S. sources.
• When other exceptional circumstances arise that could have severe adverse impacts on the Canadian economy.

Applicants can request either prospective relief (for future imports) or refunds for surtaxes already paid.

However, each case is assessed separately, and approval is not guaranteed.

How importers can claim tariff relief

Canadian importers can claim tariff relief under both SOR/2025-122 (general goods) and SI/2025-60 (motor vehicles) at the time of import by applying the appropriate Special Authorization Code in the Special Authority OIC field of the Commercial Accounting Declaration (CAD).

No separate application is required, but importers must ensure they meet all eligibility conditions outlined in the relevant order.

Claiming tariff relief for general goods (SOR/2025-122)

As outlined in Customs Notice 25-19, importers of eligible U.S.-origin goods may obtain tariff relief under the United States Surtax Remission Order (2025).

To apply the remission, the appropriate code from the list below must be used in the “Special Authority OIC” field of the CAD, noting that, where remission has been granted, surtax must be declared in addition to the applicable remission:

• 25-0466A – Public Health, Public Safety, and National Security
• 25-0466B – Health Care
• 25-0466C – Manufacture, Processing, or Packaging
• 25-0466D – Goods listed in the Schedule to the Order

Please refer to Memorandum D17-1-10, Coding of Customs Accounting Documents, for additional information on completing the CAD.

For non-commercial imports, the appropriate form (BSF715 or BSF715-1) should be completed according to standard CBSA procedures, and no surtax will be collected.

Claiming tariff relief for motor vehicles (SI/2025-60)

As outlined in Customs Notice 25-17, the United States Surtax Remission Order (Motor Vehicles 2025) offers tariff relief for specific imported motor vehicles.

To be eligible, the vehicles must be listed in Schedule 1 of the U.S. Surtax Order (Motor Vehicles 2025), and the importer must have a Business Number.

As with general goods, the remission is applied by entering the appropriate Special Authorization Code on the CAD:

• 25-0465 – For vehicles and importers listed in the remission order

Non-commercial imports of eligible vehicles can be accounted for using Form BSF715 or BSF715-1, which must be prepared according to CBSA’s usual procedures, without collecting surtax.

General notes

Importers who have already paid surtaxes but qualify under either remission order may request a refund within two years of the importation date.

Remission is not available if tariff relief has already been granted under another provision.

Additionally, all tariff relief claims—whether made at the time of import or as a refund—are subject to audit for up to four years.

If eligibility cannot be proven, CBSA may reassess the duties with interest and apply penalties.

To support your tariff remission claim, make sure you keep detailed documentation related to product classification, country of origin, intended use, and eligibility.

Next steps for Canadian importers

To determine whether your business may benefit from one of these two tariff relief programs, consider the following:

• Review your import records from March onward and flag any U.S.-origin goods that may be subject to the surtaxes.
• Assess whether the goods fall under one of the specified categories in either of the remission orders.
• Consult with your customs broker for help assessing eligibility and to avoid mistakes in your submissions.

How Cole International can help

At Cole International, we provide customs and compliance consulting and customs brokerage services to help you navigate changing regulations and streamline importing goods into Canada.

Please reach out to one of our trade professionals to learn more about your tariff relief options and how we can help you make a claim.